Trump paused reciprocal tariffs, now CEOs wonder what could happen in 90 days

US President Donald Trump’s sudden decision to pause his sweeping reciprocal tariff plan for 90 days has done little to calm the fears of global companies already caught in the storm of a growing trade war.

While the 90-day suspension offers temporary relief to dozens of countries, businesses and their leaders are left wondering what happens next — particularly with the increase in tariffs on Chinese goods and the existing duties on steel, aluminium, and cars still in place.

From tech giants like Apple to European manufacturers such as Hugo Boss and BASF, companies are now grappling with soaring costs, supply chain disruptions, and a deep sense of uncertainty about what the future holds.

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“The situation with tariffs — whether from the US or in response from the EU and other countries — is very uncertain and changing quickly,” German retailer Hugo Boss said in a statement. “We’re closely analysing the situation, especially how it could affect our sourcing and pricing.”

Hugo Boss and other companies are unsure about what will happen after the 90-day tariff pause.

“Global trade is complicated, and the rules for cross-border trade are changing quickly,” German chemicals giant BASF said on Thursday.

BASF said the direct impact of US tariffs on its business would be limited since most of its products are made locally. However, it admitted that it is hard to predict how a trade war might affect demand for its products and its customers.

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Meanwhile, tech giant Apple has arranged special cargo flights to ship 600 tonnes of iPhones — about 1.5 million units — from India to the US.

Analysts warn that iPhone prices in the US could rise sharply because Apple still depends heavily on China for production. Chinese-made iPhones are now hit with Trump’s highest tariff rate of 125 per cent.

Uncertainty remains

“A 90-day pause on tariffs may seem like short-term relief, but it creates a lot of uncertainty for businesses,” said Anita Wright, a chartered financial planner at Bolton James.

Trump says he wants to bring manufacturing back to the US, but the constant policy changes make long-term investment risky.

“The Trump tariffs are slowing down green investment just like everything else, but the impact might be even stronger in this area,” said Matthew Nordan, a partner at Azolla Ventures, a venture capital firm.

“That’s because we’re dealing with physical things — big industrial projects, steel structures, and long timelines — where tariffs create more problems than they do for services or software,” he explained.

Auto giants build up stockpiles to dodge tariff hit

Some companies, like General Motors, Porsche, and Mercedes-Benz, have stocked up on inventory in the US to avoid being hit by the new tariffs.

A weekly sales survey by the Footwear Distributors and Retailers of America shows that in the eleven weeks since President Trump took office, in-store shoe sales have dropped by 9.5% compared to the same time last year. The group represents major brands like Nike, Adidas, Skechers, and Walmart.

A spokesperson for Inter IKEA, which supplies IKEA products globally, said the new tariffs are making it harder to keep home furnishing prices affordable. “It’s too soon to say exactly how the tariffs will impact our prices, but we’re watching the situation closely and will keep reviewing it,” they said.

Volkswagen warned on Wednesday that its first-quarter profits were much lower than expected, partly due to additional costs from shipping cars to the US.

President Trump’s temporary tariff cuts have done little to help car, steel, and aluminium companies, which are still facing 25 per cent US tariffs.

In Serbia, aluminium and PVC maker Testeral may be forced to lay off workers if the tariffs remain in place, CEO Sanja Stanimirovic told Reuters.

She said the company cannot easily raise prices to cover the higher costs because it is tied to long-term contracts. Testeral currently employs around 120 full-time workers and 80 seasonal or part-time staff.